Auto Loan Calculator
Calculate monthly car loan payments, interest, trade-in value, and sales tax.
An auto loan calculator - also useful as an auto payment calculator, finance auto calculator, or car finance calculator - estimates your monthly car payment by factoring in the vehicle price, your down payment, any trade-in value, sales tax, the loan term, and the interest rate. Because sales tax and trade-in credit both affect the amount you actually finance, a car loan payment calculator gives a more realistic monthly figure than simply amortizing the sticker price alone.
Enter the car's price, how much you're putting down (in cash and/or trade-in value), your loan term in months, and your interest rate to calculate auto finance payment and total interest over the life of the loan.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| $25,000 Car, $3,000 Down, 60 Months at 6% | $425.32 / mo | Total interest over 5 years is $3,519.20. |
Popular Scenarios & Specific Calculations
What Actually Gets Financed
The amount you finance isn't the full car price - it's the price minus your down payment and trade-in value, plus sales tax (which most states apply to the price after trade-in credit, though a few tax the full price). This is why a solid trade-in or down payment does double duty: it lowers your loan amount directly and, in most states, lowers the taxable amount too.
New vs. Used Car Loan Rates
Interest rates on used cars are typically higher than on new cars, often by 1-3 percentage points, because used vehicles carry more risk for lenders (faster depreciation, higher chance of mechanical issues). Loan terms for used cars also tend to be shorter for the same reason. When comparing a new car's lower advertised rate against a used car's higher rate, it's worth running both through this calculator - a cheaper used car at a higher rate can still cost less per month and in total interest than a pricier new car at a lower rate.
How Much Car Can You Afford
A widely used budgeting guideline caps total vehicle costs - payment, insurance, and fuel combined - at around 10-15% of take-home pay, with the loan payment itself usually the largest piece. Extending the loan term lowers the monthly payment but increases total interest and raises the risk of being 'upside-down' (owing more than the car is worth) in the early years, since cars depreciate faster than a long loan pays down principal.
How to Use the Auto Loan Calculator
- Open the Auto Loan Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the auto loan calculator works.
Frequently Asked Questions
What loan term should I choose for a car loan?
A 48- or 60-month term generally balances a manageable monthly payment against total interest paid. Terms beyond 72 months lower the payment further but often mean owing more than the car is worth for a longer period.
Does my trade-in reduce the amount I'm financing?
Yes. Trade-in value is subtracted from the vehicle price before the loan amount (and, in most states, before sales tax) is calculated, directly lowering both your loan balance and monthly payment.
Are used car loan rates higher than new car rates?
Typically yes, often by 1 to 3 percentage points, because lenders view used vehicles as higher risk due to faster depreciation and higher mechanical risk.
How much should I put down on a car?
A down payment of at least 10-20% of the vehicle price is a common guideline - it reduces the amount financed and helps avoid being upside-down on the loan in the first year or two of ownership, when depreciation is steepest.
Is sales tax included in this calculator?
Yes, you can include your local sales tax rate, which most states apply after your trade-in credit is subtracted from the vehicle price.
What credit score is needed for the best auto loan rate?
Lenders typically reserve their lowest advertised rates for borrowers with credit scores above 720; scores below 600 often face significantly higher rates or may require a co-signer.
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Last updated: September 29, 2026.